bank rates

How Far The Best CD Rates Fell In 2011

Rates on average fell less in 2011As another tough year for savers comes to an end, I thought it would be interesting to take a look at just how bad the carnage has been.

Of course, CD rates lost more ground, but the difference between the start and end of 2011 wasn’t nearly as bad as what occurred in 2010.

If you’re a glass-half-full person, you can look at it and say the cuts slowed because we’re nearing the end of the downward cycle. The half-empty crowd might say the cuts slowed because there’s just no more room to fall.

Either way, the data show us the best nationally available deals on our CD Rates Leaderboard fell at a slower pace in 2011 in five of the six terms we track.

Still, it’s hard to ignore just how ugly things have gotten.

The best 36-month CD rate today is as good as the best 3-month CD rate was in January 2010.

The top nationally available 60-month CD rate is only slightly better than the best 12-month CD rate was two years ago.

Don’t look for much, if any, improvement in 2012, with the Federal Reserve pledging to hold interest rates at record lows for another 1 ½ years.

Perhaps the best we can wish for is that the rate slide continues to slow or halt altogether.

The chart below shows just how far the best nationally available CD rates have fallen in the last two years:

TERM Jan. 2010 Rate Jan. 2011 Rate % Change Dec. 2011 Rate % Change
3-month CDs 1.65% APY 0.95% APY -42% 0.80% APY -16%
6-month CDs 1.60% APY 1.11% APY -31% 0.88% APY -21%
12-month CDs 2.00% APY 1.41% APY -30% 1.15% APY -18%
24-month CDs 2.50% APY 1.65% APY -34% 1.30% APY -21%
36-month CDs 2.85% APY 2.00% APY -30% 1.65% APY -18%
60-month CDs 3.40% APY 2.75% APY -19% 2.20% APY -20%

As always, you can compare the best CD rates from scores of banks in our extensive database.

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Comments (2)
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  1. Stewart said:
    on December 30th at 07:28 am

    Amazing how the numbers reflect the pain of the nation. Kind of makes you want to take an aspirin and go to bed…

  2. Oren said:
    on January 2nd at 10:19 pm

    Not looking too good.